Prostarm Info Systems' initial public offering (IPO) has garnered significant attention from investors, with the issue being subscribed over 8 times ahead of its closing on May 29, 2025. The strong demand reflects investor confidence in the company's robust financial performance and growth prospects in the power solutions sector.
IPO Subscription Status
As of May 28, 2025, the Prostarm Info Systems IPO has received bids for approximately 9.03 crore shares against the 1.12 crore shares on offer, translating to an overall subscription of 8.06 times.
- Non-Institutional Investors (NIIs): The NII segment led the demand, subscribing 15.44 times.
- Retail Individual Investors (RIIs): The retail portion was subscribed 8.99 times.
- Qualified Institutional Buyers (QIBs): The QIB segment, which often participates more actively on the final day, has so far subscribed 0.89 times of their allocated quota.
IPO Details
- Issue Size: ₹168 crore
- Price Band: ₹95 to ₹105 per share
- Lot Size: 142 shares
- Issue Type: Entirely a fresh issue of 1.6 crore equity shares
- Subscription Period: May 27 to May 29, 2025
- Listing: Shares are scheduled to be listed on both the BSE and NSE on June 3, 2025.
Grey Market Premium (GMP)
The grey market premium for Prostarm Info Systems IPO stood at ₹25 as of the morning of May 27. Based on this, the estimated listing price could be around ₹130 per share, compared to the upper price band of ₹105. This indicates a likely gain of 23.81% on listing, if the premium holds.
Company Overview
Established in 2008 and headquartered in Navi Mumbai, Prostarm Info Systems specializes in designing, manufacturing, and selling energy storage and power conditioning equipment under the 'Prostarm' brand. Their product portfolio includes UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers. The company also undertakes rooftop solar photovoltaic power plant projects on an EPC basis.
Prostarm operates three manufacturing facilities in Maharashtra and has a network of 22 branch offices and 2 storage facilities across 17 states and one union territory in India. The company has catered to over 700 clients during FY24, including prominent names such as Larsen & Toubro, Tata Power, and Bajaj Finance.
Financial Performance
For the fiscal year 2024, Prostarm Info Systems reported:
- Revenue from Operations: ₹257.9 crore, a 12% increase from the previous fiscal year.
- Net Profit: ₹22.8 crore, an 18% rise compared to FY23.
- EBITDA: ₹35.3 crore, marking a 29.8% growth.
- EBITDA Margin: 13.7%, an expansion of 190 basis points from the previous year.
Use of IPO Proceeds
The company plans to utilize the net proceeds from the IPO for the following purposes:
- Working Capital Requirements: ₹72.5 crore
- Repayment of Debt: ₹18 crore
- Acquisition of Further Stake in Subsidiary: ₹9 crore
- Inorganic Growth and Strategic Initiatives: Remaining funds
Brokerage Recommendations
Analysts have expressed optimism about Prostarm Info Systems' IPO:
- Bajaj Broking: Recommended subscribing to the IPO with a long-term perspective, citing the company's growth in top and bottom lines and its ability to provide comprehensive services.
- Anand Rathi: Believes the issue is fairly priced and recommends a 'Subscribe – Long Term' rating, highlighting the company's plans to expand production capabilities and integrate automation technologies.